Jeans giant vf to buy exterior gear maker
Vf corp, taking another step to widen its niche apparel lines while its big jeans business retrieves, agreed friday to buy attempting sportswear and outdoor equipment maker the north face inc.Of $25.4 million in actual funding.
The go to came only two days after loss ridden north face, a single sa functionaln leeveryndro, calif.Based concern which was founded in 1966, said it might have to seek defense against creditors via a bankruptcy reorganization.Vf also sells jeans beneath the wrangler, individuals, rustler and brittania producing tags.
So the north face deal is the latest [b][url=http://www.rcorner.co.uk]north face sale kids[/url][/b] in a spree of small purchases that vf has made recently to bolster its position in specialty markets what vf likes to call"Lifetime brands"Of apparel and related elements while it tries to rekindle its ailing jeans divisions.Corporation.Brand of jeans and casual pants for both sexes.The deal were not disclosed.
And really month, vf bought the eastpak brand of school bags, book bags and other school supplements from sunbeam corp, also for undisclosed levels.Eastpak will be rolled into vf's jansport scale, that also makes backpacks along with outdoor equipment, suitcases and apparel.
Vf's other existing lines include bestform and vanity fair underwear, jantzen swimsuits, and lines of uniform and power company"Work out gear"Jacket.
To date, provide a choice, vf's recent exchange spree hasn't lit a fire under wall street.Vf's stock has plunged 50% over recent times, and 20% of that decline came withduring the last five months.The [b][url=http://www.rcorner.co.uk]http://www.rcorner.co.uk/[/url][/b] stock ended up another 94 cents a share friday, to positively $24.13, In lse composite trading.North face's deal in, interim, ran 72 cents to $1.94 a share on Nasdaq in step to the VF pact.
Vf sought north face to supply"A global dimension to its growing demo tape of strong outdoor lifestyle brands, vf chairman mackey mcdonald said in an announcement.He also vowed that vf would need to"Uphold the north face's tradition of providing progressive, highly complicated products to an intensely loyal consumer base,
He [b][url=http://www.rcorner.co.uk]North Face:http://www.rcorner.co.uk/[/url][/b] also said north face's leader, geoffrey lurie, would keep that post after buy is completed.
"This looks like a inexpensive price for a very strong brand, expressed leslie mccall, an analyst at your time and money firm brown bros.Harriman in big apple. "Vf brings bigger budgets to the table, and north face rounds out appeal of soy end of their[outdoor supplies)Accounts,
North face was started by two hiking devotees as a small, alpinism retail store in san francisco's north beach district.But title was mainly chosen because, in the upper hemisphere, the north face of a mountain is usually the coldest, iciest and trickiest to climb, based on the company.
North face today makes quite a few pricey outdoor gear, including sleeping-Bags, alpinism packs, tents, ski wear [b][url=http://www.rcorner.co.uk]North Face UK Outlet[/url][/b] and other coats.Their line includes $600 tents and $500 raincoats.
But freebies has been plagued by financial problems and management turmoil.A last year, north face had to restate its financial results for 1997 and 1998 after auditors questioned the way it recorded several contracts.
That stimulated a sharp drop in its stock price, prompted a rash of shareholder lawsuits and tripped up north face plans to be acquired by a group that included an investment firm and its then leader, sam fifield, who quit last sept.
Vf is acquiring north face at an important discount to north face's sales, the fact that total about $240 million a year, because of north face's widening losses and its find it hard to keep paying its debts.
It prevents that fate with vf, which also had a frustrating 1999.In the past year, their profit fell 6% from the prior year, to successfully $366.2 million, On virtually flat sales of $5.6 billion dollars.
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